Chapter 04 essentials final

Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011

Chapter 4

The design of services and products


Design

Deliver

Direct

Develop

Operations Management

Slack et al’s model of operations management

Location, layout

and flow

Process design

Product and service design


In Chapter 4 – The design of products and services – Slack et. al. identify the following key questions…….

Why is good product and service design important?What are the stages in product and service design?Why should product and service design and process

design be considered interactively?How should interactive design be managed?

Key operations questions


Example – The troubled history of the Airbus A380

What were the causes of the delays in the ‘time to market’ of the Airbus A380?

What were the effects of the delays in the ‘time to market’?


Products and services should be designed in

such a way that they can be created effectively

Designing the product or

service

Processes should be designed so they can create all products

and services which the operation is likely to introduce

Designing the process

Product / service design has an impact on the process design and

vice versa

The design of products/services and processes are interrelated and should be treated together


Why is design so important?

UK Design Council Survey…..

Design helps businesses connect strongly with their customers

90% of businesses growing rapidly say design is significant to them, only 26% of static companies say the same.

Design reduces costs by making processes more efficient. It can also reduce the time to market for new products and services.

Almost 70 per cent of companies seeing design as integral have developed new products and services in the last three years, compared to only a third of businesses overall.

Companies who were ‘effective users of design’ had financial performances 200% better than average.


What is designed in a product or service?

A concept the understanding of the nature, use and value of the service or product;

A packageThe group of ‘component’ products and services that provide those benefits defined in the concept;

A processthe way in which the component products and services will be created and delivered.


Example – Spangler, Hoover and Dyson

What was Spangler’s mistake?

What do you think makes ‘good design’ in markets such as domestic appliances?

Why do you think two major vacuum cleaner manufacturers rejected Dyson’s ideas?

How did design make Dyson a success?


The product / service design process whose performance is measured by its Quality Speed Dependability Flexibility and Cost

Outputs

Fully specified products

and services

Inputs

The product and service design activity is a process in itself

Transformed resources, eg.Technical informationMarket informationTime information

Transforming resources,eg.Test and design

equipmentDesign and technical

staff


The stages of product / service design

Concept generation

Concept screening

Preliminary design

Evaluation and improvement

Prototyping and final design


Concept generation……

Ideas from customers formally through Marketing activities

Listening to customers - on a day-to-day basis.

Ideas from competitor activity – For example reverse engineering

Ideas from staff – Especially those who meet customers every day.

Ideas from research and development


Example – The Blow Dry Bar

From a market perspective, why was the blow dry bay successful?

From an operations perspective, why is the blow dry bar successful?


Broad categories of evaluation criteria for assessing concepts

Feasibility - How difficult is it?

The criteria for screening concepts

What investment both managerial and

financial will be needed?

What return in terms of benefits to the operation will

it give?

What risks do we run if things

go wrong?

Acceptability - How worthwhile is

it?

Vulnerability - What could go

wrong?

Overall evaluation

of the concept

Concept screening……


Uncertainty regarding the final design

Certainty regarding the

final design

TIME

Design involves progressively reducing the number of possibilities until the final design is reached

CONCEPT

FINAL DESIGN SPECIFICATON

Choice and evaluation "Screens"

Large number of design options

One design


Example – Square watermelons

What market-related questions would you ask before producing square watermelons commercially?

What finance-related questions would you ask before producing square watermelons commercially?

What operations-related questions would you ask before producing square watermelons commercially?


The component structure for remote mouse

LEVEL 0 Remote mouse

LEVEL 1

LEVEL 2

LEVEL 3 Lead Plug CoverSpeaker

LeafletOuterLogoMoulding Battery housing

Mould-ing

Spring base

Button

Preliminary design……

Upper casing

Control unit

Lower casing

Packing


- quality function deployment;

- value engineering;

- Taguchi methods.

Design evaluation and improvement……

There are various ways of evaluating preliminary designs

These include:



A delays in the ‘Time to Market’ disproportionally delays the financial breakeven point

Delay in financial

breakeven

Delay in Time to Market

Development costsDevelopment costs of delayed project

Time

Cash Sales Revenue

Delayed Sales Revenue

Cash flow

Delayed Cash Flow


Sequential and simultaneous arrangement of the stages in the design activity

Third Stage in the Design Activity

Second Stage in the Design Activity

First Stage in the Design Activity

etc.

First Stage in the Design Activity

Second Stage in the Design Activity

Third Stage in the Design Activity

etc.

Communication between stages

Sequential arrangement of stages

Simultaneous arrangement of stages


Management activity profile

Where should the management attention be?KNOWLEDGE AQUISITION

CONCEPT INVESTIGATION

BASIC DESIGN

INITIAL TESTS

PILOT PRODUCTION

MANUFACTURING RAMP-UP

LAUNCH

TIME

Ability to influence the final design


Low

High

Slow Time to Market

Fast Time to Market

Sorting out problems early saves greater disruption later D

egre

e of

agr

eem

ent

over

des

ign

deci

sion

an

d ch

ange

s in

des

ign

Early stages of the total design activity

Later stages of the total design activity


INCREASING PROJECTORIENTATION

P.M.F.M. = Functional manager

= Project manager

Organization structures for the design activity

P.M.

P.M.

P.M.

F.M. F.M. F.M. F.M.

PURE FUNCTIONALORGANISATION

F.M. F.M. F.M. F.M.

P.M.

P.M.

P.M.

F.M. F.M. F.M. F.M.

F.M. F.M. F.M. F.M.

P.M.

P.M.

P.M.

PURE PROJECTORGANISATION

P.M.

P.M.

P.M.

F.M. F.M. F.M. F.M.

P.M.

P.M.

P.M.

Education

Chapter 04 essentials final